The European Central Bank needs to maintain the pace of rate rises at its next vote to convince the public that policymakers are “serious” about taming inflation, said Austria’s hawkish central bank chief.
Robert Holzmann, head of the National Bank of Austria and member of the ECB’s governing council, backed a third straight 0.75 percentage point rise in the deposit rate at the next rate-setting meeting in mid December. The move would raise benchmark borrowing costs to 2.25 per cent.
His comments underline the potential for a clash at the next vote, with policymakers split between keeping up the pace and switching to smaller increases on the back of signs of a recession.
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